Clemex Discloses Second Quarter Results for FY 2010

The company announces a profit despite the weak economic recovery

    
    Symbol: CXG.A-TSXV
    www.clemex.com
    Shares Outstanding: 20 749 810
    

MONTREAL , Dec. 16 /CNW Telbec/ - Clemex Technologies Inc. (TSX Venture CXG.a), designer and manufacturer of Image Analysis systems and software for microscopy applications, announces today its quarterly results for the second quarter of FY2010 ending October 31th, 2009 . For this second Quarter, sales reached $1,025,059 a decrease of $240,858 or 19% less than last year for the same period. For this past Quarter, the Corporation posts a Net Profit of $50,871 compared to a Net Loss of $110,784 for Q2 last year.

The expense reduction plan, set forth in the fall of 2008, resulted in a decrease in commercial and administrative costs and contributed significantly to the quarter's profit. Gross Margin remains at 59.6%. Research and Development costs are 38 % lower for Q2 of this fiscal year compared to the same period last year due to salaries and sub-contractors costs being partially reimbursed by NRC for the development of the hematology image analysis instrument.

Over the last three months, the Company made important sales to strategic clients in the manufacturing sector in North America and International market, including ; Aerojet, Jonesborough, TN ; ALCOA ; Deschambault, Quebec ; Linamar Gear in Guelph, Ontario; Arcelor Mittal in US, Steelton, PA and Stihl, Virginia Beach , VA. Sales through distributors were concluded to YIEH Steel, in China , Hyundai Steel, in South Korea and Agusta Helicopter in Italy . Some specialized instruments were also sold to the NASA at the Marshall Space Flight Center, AL for cleaning room air control quantification and another one was sold to the IRSST in Montreal for the measure of asbestos fiber concentration inhaled by workers.

    
    FINANCIAL HIGHLIGHTS

                                   Second Quarter            Six Months
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                 Fiscal Year  	   2010        2009        2010        2009
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                                     $           $           $           $
    Sales                    1,025,059   1,265,917   1,753,690   2,785,599
    Cost of Sales              414,153     503,242     679,000   1,114,307
    -------------------------------------------------------------------------
    Gross Margin               610,906     762,675   1,074,690   1,671,292
                                  59.6%       60.2%       61.3%       60.0%
    Operating Expenses
      Commercial Expenses      256,276     401,895     495,083     792,409
      Administrative
       Expenses                177,064     370,351     346,081     613,259
      R&D less Tax credits      68,907     111,228     152,791     256,205
      Amortization              29,244      19,791      58,200      39,582
      Interest & bank
       charges                  18,284      27,056      41,285      58,602
      Net foreign exchange
       loss (gain)              10,260     (56,862)     71,407     (53,513)
    -------------------------------------------------------------------------
                               560,035     873,459   1,164,847   1,706,544

    Net Profit / Loss           50,871    (110,784)    (90,157)    (35,252)

    Net Profit / Loss per
     share                       0.002      (0.005)     (0.004)     (0.002)
    

Clement Forget , President and CEO of Clemex Technologies Inc. declared: "Even though the rise in the activity level in the United States remains relatively precarious, we are noticing a renewed interest in our products, particularly from the automotive sector, which was almost at a dead point in the previous quarter. We also see some signs of improvement in the steel industry in Asia and Europe which should bring some additional sales for our non-metallic inclusion rating instrument as we are clearly the uncontested leader in this field". He continued:" On the other hand, the development of our new medical instrument is on target, and unless unexpected delays happen, a prototype will be ready in spring of 2010 and sales will begin in the fall of 2010."

About Clemex Technologies, Inc.

Clemex Technologies Inc. develops, manufactures and markets image analysis systems and software used by quality control and research microscopy laboratories. Clemex' customer base spans over many countries in America, Europe , Asia and encompasses major Research and Development Centers, prestigious Universities and large manufacturing industries in various fields including health care, automotive, aerospace, raw materials manufacturing, pharmaceuticals, mining and other sectors.

The TSX Venture has not reviewed and does not accept responsibility for the adequacy and accuracy of this news release.

For further information: Clément Forget, Clemex Technologies Inc, [phone], [email protected]